Well today I tried non conforming loans, I was told that I wouldn't get finance because I had no deposit and they would not loan 106% to purchase a house. They did say that if I got some gift money 20% that I would not have any problems, they also said that there is not many out there now that do non conforming loans.
Does anyone want to loan me a deposit
say 20,000.00 should be enough and I can pay it back overtime with interest of coursePhoned around and found out about structure eg trust, – was advised not to have my name anywhere near the trust. eg not even to be a trustee, So now I am even worse off than before. It looks like at this stage that I am not ready to get started. I am a believe that were there is a will there is a way, back I don't know my way.
regards
see
https://www.propertyinvesting.com/forums/getting-technical/finance/4324850?highlight=private%2Cfinance
look at {mortgage plus's} comment in above posting hyperlink !Dr.Spock wrote:Phoned around and found out about structure eg trust, – was advised not to have my name anywhere near the trust. eg not even to be a trustee, So now I am even worse off than before. It looks like at this stage that I am not ready to get started. I am a believe that were there is a will there is a way, back I don't know my way.As far as I'm concerned they're right. You should not PERSONALLY be the trustee. Better to set up a pty ltd company, with you as sole director and make THAT the trustee.
A bit more paperwork involved – for the company, trust, and the loan once you go for it – but it means there's always another degree of separation between you and the property if the worst happens and someone wants to come after the owner of said property for cashish.
Working in the non conforming marketspace myself, I know that lending criteria have been tightened to a level resembling a fishes ar*e recently and that 106% is out of the question at the place I work for. No, I'm not going to tell who it is. I'd venture to say if there were any non conformings doing 106% you'd be paying low end credit card rates for it anyway. Why? Because no lender wants to be in a negative equity situation from the get-go right now. Do you really want to be paying 13 – 15% for your investment mortage? That's either the world's biggest negative gear or the property is returning 17 – 20%. I'd be keeping the name of that town secret if I were you, cos if word gets out the place will go off like a firecracker!
Do yourself a favour and save the deposit. If you have the cashflow to support a negative equity situation, you probably have the cashflow to put aside a deposit. Speak to your accountant before you do anything though, and make sure you research research research. Preparation is key to investing. Make sure you know what your objectives are and have a plan and structure to get there. And don't worry if you miss out on this opportunity. Prepare and when the next one comes along (which it will) you'll be ready.
thanks for your comments,
Hi All,
Duckster I read the mezz finance information that you suggested, but don't you have to be a company, with a very good business plan to obtain this kind of finance, or am I missing something? It would have to be a very good investment to be able to repay the debt my understanding is it is upto 30% repayments.
Can someone explain how mezz finance works?
What do you need to get this type of finance?
say 20,000.00 should be enough and I can pay it back overtime with interest of course
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